Ecclestone Case Clouds Outlook for Formula One IPO

The indictment of Formula One Group Chief Executive Bernie Ecclestone by German prosecutors has cast a shadow over what could be the biggest initial public offering of the year in Singapore.

European private-equity firm CVC Capital Partners, which holds a 35% stake in Formula One, had planned to float the company in Singapore last year in a deal that was expected to raise around $2.5 billion, but shelved the plan due to weak markets.

CVC had hoped to revive the offering later this year, with the timing depending on the outcome of Mr. Ecclestone’s case, people with knowledge of the deal said earlier this year.

CVC said in a statement Thursday that the Board of Formula One noted the developments and would continue to monitor developments accordingly.

The indictment of Mr. Ecclestone, a dominant figure in the sport for decades, could force him to resign and threaten the racing circuit’s ties to major sponsors and partners.

On Wednesday, German prosecutors indicted Mr. Ecclestone for bribery in connection with $44 million he paid to a German banker in 2006-07. Prosecutors alleged that Mr. Ecclestone bribed the banker to facilitate the sale of German state bank BayernLB’s stake in Formula One to CVC in 2006.

Mr. Ecclestone has acknowledged making the payment but said he did so only because he was blackmailed. He has denied wrongdoing.

CVC has already cashed out of part of its investment in Formula One by selling stakes to institutional investors such as Waddell & Reed Financial Inc., Norges Bank Investment Management and BlackRock Inc. in 2011. It previously held a 63% stake.